Cotton Prices Remain High, Cotton Futures Continue To Record High

　 Following the first day of November, cotton futures (30100690.00,2.35%) futures contract 1105 contract yesterday hit a new high of 28900 yuan / tonne. In the past two months, cotton prices have surged to a record high of ten thousand yuan per ton.

For cotton prices clearly deviated from the rise in value, analysts believe that this is not enough for supply, new cotton listed time has been postponed compared with previous years, resulting in a longer period of this year, and more hot money in the market, inflation and other factors. However, in the light of the current situation, with the gradual improvement of the short-term supply and demand relationship, cotton prices will come down in mid November after the high point, and will start a concussion market.

As the current round of domestic bulk Varieties The source of price surging, international cotton Prices have also been linked since the end of September. New high 。 The International Cotton Advisory Committee (ICAC) said on Monday that global cotton prices reached record highs in October, and the volatility in the first three months of the new crop season also reached record levels.

ICAC's secretariat said in a report that the Cotlook A index set a record of $1.47 a pound, higher than the previous high of $1.19 a pound in April 1995. The average price in October was $1.27 per pound, up 89% from October 2009.

ICAC pointed out that the average price volatility in 2010 8-10 was 57%, much higher than 11% in the same period of 2009/10. "This is the highest level of volatility in the first three months of the crop year since the first Cotlook A index was published in 1960s." ICAC said.

The rise in cotton prices is due to tight global cotton inventories and high demand. ICAC said flooding in Pakistan led to a decline in domestic production, and China's output was lower than expected, which also affected cotton prices.

ICAC said global cotton stocks remained tight in 2010-2011 as production and factory usage increased.

ICAC estimates that the Cotlook A index for 2010/11 is US $0.92 per pound, 18% higher than the previous crop year, and the highest level since 1994-1995.